In what ways does corporate strategy affect capacity decisions?
The ABC Cement Corporation produces a high-quality cement that is supplied to construction companies. The potential demand and the probability of each potential demand quantity are given for the upcoming year:
Demand in Tons
Assuming manufacturing capacity of 700,000 tons, what is the estimated capacity cushion ?
Describe the most important questions to be answered concerning facilities decisions. Apply the questions to a fast-food restaurant chain with expanding demand.